Ripple’s Legal Battle with SEC Continues with Latest Ruling from Judge
The ongoing legal battle between Ripple Labs and the SEC has taken a new turn after a court ruling barred the SEC’s key expert from testifying
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The ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs continues with a new court ruling.
The court has now ruled on the parties’ requests to exclude expert reports from consideration in the summary judgment and trial.
In the verdict, Judge Analisa Torres granted some of the motions and denied others, with neither the plaintiff nor the defendant prevailing.
However, one of the key findings of the ruling was the exclusion of Expert #1, Patrick Doody, from testifying about the perceptions of a reasonable XRP buyer.
It’s worth noting that the SEC previously hired Doody to analyze token buyer expectations, but the judge has now granted Ripple’s request to have his testimony barred.
The exclusion of Doody’s testimony has implications for the SEC’s case, as the agency must demonstrate that investors had a reasonable expectation of gains from Ripple’s efforts. Without Doody’s testimony, it’s unclear how the SEC will prove a “reasonable” trust.
Scott Chamberlain, an attorney at Seward & Kissel, commented on the ruling on Twitter, stating that neither side got everything they wanted due to a lack of sound arguments. Chamberlain, however, commended Judge Torres for being “harsh, rigorous and completely impartial”.
Jeremy Hogan, an attorney who has been closely following the Ripple case, also took to Twitter to offer his thoughts on the ruling. Hogan noted that the SEC’s sole expert on “reasonable” expectation of profits was struck down, leaving the agency in a difficult position.
The exclusion of Doody’s testimony is a setback for the SEC, but the agency is expected to pursue its case against Ripple and its leaders.
The SEC filed a lawsuit against Ripple and its senior executives Brad Garlinghouse and Chris Larsen, accusing them of illegally selling securities in violation of US securities laws.
As U.Today reports, Brad Garlinghouse fully expects the lawsuit to be decided later this year.